Sometimes a person finds himself with such an enormous amount of credit card and other debt that he considers bankruptcy to get rid of it. This may not be his best option, though. It is possible that grant money to pay off debt is available.
Phoenix, AZ -- (SBWIRE) -- 03/08/2013 -- When someone sees late-night infomercials for free money to pay off debt, he ought not to believe them. Salesmen are paid to state that there is a certain amount of government money available for those who have a heavy debt load. This is not the truth. The Federal Trade Commission (FTC) warns that this sales pitch is a con to bilk financially strapped people. There are a few grants out there for individuals, but they are meant for those fulfilling a public service such as academic research.
Credit-yogi.com has looked into this topic, and would like to share what it found out with everyone, including:
- Scam Alert
- Government Grant Availability
- Loan Forgiveness Programs
- Modification Programs
Grant Scam Alert
Apply For A Government Grants To Pay Off Debt
Federal Government Grants
The FTC says that no one should ever pay anyone for information about grant money to pay off debt. The information is free at Grants.gov, the government’s website for acquiring money that doesn’t have to be paid back. The U.S. Department of Health and Human Services states clearly that grants from the government cannot be used for individual expenditure. A person cannot use a grant for debt repayment or obtain personal financial aid for such a purpose.
Loan Clemency Programs
Rather than searching for free money to pay off debt, perhaps an individual should look into loan forgiveness programs. Student loans constitute a large part of a person’s debt. Graduates can eradicate a portion of their debts, depending on what field they go into. An example of this is the Federal Family Education Loan Program, which pays a part of a teacher’s debt if he works in a low-income neighborhood. Any money a person doesn’t have to put toward his school loans is money he can use for debt repayment.
Loan Modification
Again, because there isn’t grant money to pay off debt, looking into alternate ways of decreasing expenditures to eliminate debt is a wise move. For example, if a homeowner is having trouble making his mortgage payments, he may be eligible for a loan modification through the government. If he can reduce his monthly payment, he can use the money saved to get rid of his debt.
About Credit-yogi
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